Will the market wait and see how much further the U.S. dollar can rise following Trump’s landslide victory?
07.11.2024
- Germany: Industrial Production
- U.S. FOMC Policy Rate and Statement Release
In the U.S. currency market the previous day, the dollar strengthened throughout the day following the Republican Party’s landslide victory in the U.S. presidential election. The EUR/USD pair fell from 1.0936 to 1.0681, plummeting to the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, the price has moved from above the 20-period moving average (MA) to below it, while on the daily chart, the price has broken significantly below the 200-period simple moving average (SMA) support line with a solid body.
Among European currencies, the euro rose slightly against the yen. The EUR/JPY pair climbed from 164.920 to 166.103. On the hourly chart, the price has moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the price is trading just below the 20-period MA, while on the daily chart, the short- and long-term moving averages are converging. Therefore, we should exercise caution in assessing whether price fluctuations will occur during European trading hours.
Today’s economic indicators include German industrial production and trade balance at 16:00, UK Halifax house prices at 21:00, the Bank of England’s interest rate decision and policy statement at 21:30, a press conference by Bank of England Governor Bailey at 22:30, U.S. initial jobless claims at 24:00, U.S. wholesale inventories at 24:00,at 12:30 a.m. (GMT+9): U.S. weekly natural gas inventories; at 4:00 a.m. (GMT+9): U.S. FOMC policy rate decision and statement; and at 4:30 a.m. (GMT+9): U.S. Federal Reserve Chair Powell’s press conference. We intend to cautiously monitor the upside potential of the U.S. dollar, which has risen across the board following Trump’s landslide victory.
Author: Keisuke Sakurai
